AirAsia has plans for a net fleet growth of 20 aircraft this year, and expect to receive its first A321neo in November. — Reuters photo
KUALA LUMPUR: Budget airline AirAsia Group Bhd on Wednesday reported its smallest quarterly net profit since 2014 as the airline recognized losses in its Indian associate company.
The group said the second-quarter results recognized the share of prior year losses at AirAsia India (AAI) as a result of an increase in its investment in that airline.
AirAsia also said it was hit by foreign exchange losses during the second quarter which ended on June 30. But the company benefited from deferred taxation of RM250.1 million in the quarter.
Net profit was RM17.9 million for the April-June period, a 95 per cent drop from RM361.8 million recorded a year ago.
Revenue was 20 per cent higher at RM3.1 billion, however.
The airline carried 12.8 million passengers in the three-month period, 18 per cent higher leading to an 85 per cent load factor, which measures how full planes are.
AirAsia said it planned for a net fleet growth of 20 aircraft this year, and expect to receive its first A321neo in November. The A321neo is more fuel efficient and has a longer range.
“We continue to work on reducing costs including investment in digitalization which we believe will help reduce costs in the long run,” it said.
Last week, its long-haul offshoot AirAsia X Bhd reported its largest quarterly loss since 2015 due to aircraft disposal and a weak ringgit. — Reuters